 |  |  |  |  |  |  |
| For more information about viewing or qualifying for Bank Owned Homes contact our offices today at 626.358.1858 / Monrovia or 626.963.7621 Glendora. New attractive homes are listed every week so we encourage you to visit www.C21AB.net for your Bank Owned needs. |
EACH OFFICE IS INDEPENDENTLY OWNED & OPERATED / ©2008 Century 21 Real Estate LLC. An Equal Opportunity Company. Century 21 Real Estate LLC and its parent company, Realogy Corporation, fully support the principles of the Fair Housing Act (Title VIII of the Civil Rights Act of 1968). A
Realogy Company. Each Century 21 Office Is Independently Owned And Operated. All rights reserved. Information appearing on this site has been produced by or obtained primarily from Century 21 Real Estate LLC and its representatives and from Century 21 franchisees. Century 21 Real Estate LLC is
not responsible for the accuracy or completeness of the broker information, sales associate information, listing information or other information provided by our franchises appearing on or through this site. Such information has been provided by independent third parties who are solely responsible for such
content. Certain conditions and restrictions apply to System promotions. Monrovia, Monrovia Real Estate, Glendora, Glendora Real Estate, CENTURY 21 Commercial, Tom Adams, Joe Garcia, Karen Taylor-Straley, Monrovia City Council, Hugo Torres, Rich Faeh, Arcadia Association of Realtors,
AAR, Citrus Valley Association of Realtors, Duarte, Duarte Real Estate, Arcadia, Arcadia Real Estate, San Marino, Sal Marino Real Estate, LeadRouter, CGRN, Donna Baker, Dixon Podley
Realogy Company. Each Century 21 Office Is Independently Owned And Operated. All rights reserved. Information appearing on this site has been produced by or obtained primarily from Century 21 Real Estate LLC and its representatives and from Century 21 franchisees. Century 21 Real Estate LLC is
not responsible for the accuracy or completeness of the broker information, sales associate information, listing information or other information provided by our franchises appearing on or through this site. Such information has been provided by independent third parties who are solely responsible for such
content. Certain conditions and restrictions apply to System promotions. Monrovia, Monrovia Real Estate, Glendora, Glendora Real Estate, CENTURY 21 Commercial, Tom Adams, Joe Garcia, Karen Taylor-Straley, Monrovia City Council, Hugo Torres, Rich Faeh, Arcadia Association of Realtors,
AAR, Citrus Valley Association of Realtors, Duarte, Duarte Real Estate, Arcadia, Arcadia Real Estate, San Marino, Sal Marino Real Estate, LeadRouter, CGRN, Donna Baker, Dixon Podley
Buying Bank-Owned Properties.
With so much recent interest on bank-owned properties (REOs), the team at CENTURY 21 Adams & Barnes thought we take a moment to give some background and education on the
opportunities and points-to-ponder with this growing sector in real estate.
What’s an REO?
REO stands for “Real Estate Owned”. These are properties that have gone through foreclosure and are now owned by the bank or mortgage company. This is not the same as a property
up for foreclosure auction. When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure
process. You must also be prepared to pay with cash in hand. And on top of all that, you’ll receive the property 100% “as is”. That could include existing liens and even current occupants
that need to be evicted. A REO, by contrast, is a much “cleaner” and attractive transaction. The REO property did not find a buyer during foreclosure auction. The bank now owns it. The
bank will see to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing. Do be aware that REO’s may be
exempt from normal disclosure requirements. In California, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that normally requires sellers to tell
you about any defects they are aware of.
Is It A Bargain?
It’s commonly assumed that any REO must be a bargain and an opportunity to buy a home "cheaply" or to make some "easy money". This simply isn't true. You have to be very careful
about buying an REO and ensure that you have a qualified and well-trained REALTOR who can guide your through the process. While it’s true that the bank is typically anxious to sell it
quickly, they are also strongly motivated to get as much as they can for it. When considering the value of a REO, your REALTOR and you must look closely at comparable sales in the
neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale. The opportunity to purchase a great home at a great
price is out there. Our REALTORS are trained to see these opportunities and guide you through all the appropriate steps.
Ready To Make An Offer?
Most banks have a REO department that your REALTOR and you will work with in buying a REO property from them. Typically the REO department will use a listing agent to get their REO
properties listed on the local MLS. Before making the offer, your CENTURY 21 Adams & Barnes REALTOR will want to contact either the listing agent or REO department at the bank and
find out as much as you can about what they know about the condition of the property and what their process is for receiving offers. Since banks almost always sell REO properties “as is”,
you’ll want to be sure and include an inspection contingency in your offer that gives you time to check for hidden damage and terminate the offer if you find it. As with making any offer on
real estate, you’ll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender. After you’ve made your offer, you can
expect the bank to make a counter offer. Then it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer. Realize, you’ll be dealing with a process
that probably involves multiple people at the bank, and they don’t work evenings or weekends. It’s not unusual for the process of offers and counter offers to take days or even weeks.
Therefore, our REALTORS are training to communicate with you every step of the way so that you know what's happening, when its happening.
With so much recent interest on bank-owned properties (REOs), the team at CENTURY 21 Adams & Barnes thought we take a moment to give some background and education on the
opportunities and points-to-ponder with this growing sector in real estate.
What’s an REO?
REO stands for “Real Estate Owned”. These are properties that have gone through foreclosure and are now owned by the bank or mortgage company. This is not the same as a property
up for foreclosure auction. When buying a property during a foreclosure sale, you must pay at least the loan balance plus any interest and other fees accumulated during the foreclosure
process. You must also be prepared to pay with cash in hand. And on top of all that, you’ll receive the property 100% “as is”. That could include existing liens and even current occupants
that need to be evicted. A REO, by contrast, is a much “cleaner” and attractive transaction. The REO property did not find a buyer during foreclosure auction. The bank now owns it. The
bank will see to the removal of tax liens, evict occupants if needed and generally prepare for the issuance of a title insurance policy to the buyer at closing. Do be aware that REO’s may be
exempt from normal disclosure requirements. In California, for example, banks are exempt from giving a Transfer Disclosure Statement, a document that normally requires sellers to tell
you about any defects they are aware of.
Is It A Bargain?
It’s commonly assumed that any REO must be a bargain and an opportunity to buy a home "cheaply" or to make some "easy money". This simply isn't true. You have to be very careful
about buying an REO and ensure that you have a qualified and well-trained REALTOR who can guide your through the process. While it’s true that the bank is typically anxious to sell it
quickly, they are also strongly motivated to get as much as they can for it. When considering the value of a REO, your REALTOR and you must look closely at comparable sales in the
neighborhood and be sure to take into account the time and cost of any repairs or remodeling needed to prepare the house for resale. The opportunity to purchase a great home at a great
price is out there. Our REALTORS are trained to see these opportunities and guide you through all the appropriate steps.
Ready To Make An Offer?
Most banks have a REO department that your REALTOR and you will work with in buying a REO property from them. Typically the REO department will use a listing agent to get their REO
properties listed on the local MLS. Before making the offer, your CENTURY 21 Adams & Barnes REALTOR will want to contact either the listing agent or REO department at the bank and
find out as much as you can about what they know about the condition of the property and what their process is for receiving offers. Since banks almost always sell REO properties “as is”,
you’ll want to be sure and include an inspection contingency in your offer that gives you time to check for hidden damage and terminate the offer if you find it. As with making any offer on
real estate, you’ll make your offer more attractive if you can include documentation of your ability to pay, such as a pre-approval letter from a lender. After you’ve made your offer, you can
expect the bank to make a counter offer. Then it will be up to you to decide whether to accept their counter, or offer a counter to the counter offer. Realize, you’ll be dealing with a process
that probably involves multiple people at the bank, and they don’t work evenings or weekends. It’s not unusual for the process of offers and counter offers to take days or even weeks.
Therefore, our REALTORS are training to communicate with you every step of the way so that you know what's happening, when its happening.
| Even in the best markets, the best homes go quickly. Contact us @ 626.358.1858 or simply fill out the form below. We'll contact you right away. |
